California Minimum Wage FAILS

welcome welcome everyone my name is Sean and today I want to talk about what is going on in the state of California now that it has come into effect that their minimum wage for fast food workers with large chains that have over whatever number of stores has jumped from $16 an hour to $20 an hour because what we are seeing is all the predictable consequences one could expect and despite what we were told at time and time again about a great number of people being willing to pay just a little bit more money so that these people can have a so-called living wage in reality in actuality sales are going to drop and people are going to lose their jobs but before we get into that this video is sponsored so let me toss it to the sponsor then we'll bring it back over here and we'll talk about it on the other side some of my Fondest Memories growing up as a child are waking up for Saturday morning cartoons and pouring myself a big bowl of cereal but the thing is as an adult somebody who's trying to watch my carb intake watch my sugar that's not something that agrees with my current lifestyle or at least it didn't until I discovered magic spoon magic spoon is a wholesome throwback kind of brand that meets the adult needs of people that are looking to still have some delicious cereal it has no sugar zero g of it it also contains depending on the flavor 13 to 14 g of protein and four to five net carbs per serving by the way the servings 140 calories but delicious in every bite as you you can see I've been kind of going through the chocolate right now this one is obviously my favorite but next up on my list to try is the Frosted one I mean because come on this is about my throwback my youth and restoring that now not only does magic spoon offer the cocoa and the Frosted variety but there's also the fruity and the peanut butter variety so you could take your taste buds back on whatever nostalgic Journey you want to go on on top of that gluten and grainfree so if you have celiac disease guess what you can have cereal you can live those childhood memories in an absolutely delicious way and the taste I mean speaks for itself I know this is a weird thing for me to appreciate but it turns my milk chocolatey just like back in the day I'm going to eat I'll tell you the promo code and all that in a minute now if you guys want to try magic spoon get yourself the variety pack with the four flavors that I just listed what you want to do is go to get yourself $5 off that order and guess what magic spoon is so confident in their formula they're so confident that this will be a throwback deliciously crafted for you they're offering a 100% satisfaction guarantee so what are you doing scan the QR code on screen go to magicpin me for Saturday morning cartoons with a bowl of cereal so this all started last year in September when California governor Gavin Nome signed into law assembly Bill 1287 which rais the wages for fast food workers that are in Chains From $16 to $20 an hour now this has been controversial for a great number of reasons first and foremost one of Gavin Newsome's primary supporters owns a bunch of different Panera Breads and there's actually a carve out in this particular wage increase for restaurants that have baked goods that are baked on site that exists prior to the implementation of this law and when you work out all the details what you find out that is it's an exemption for Panera Bread now we're learning that some companies as you mentioned will be exempt from this which brings us to Panera Bread because of the franchise they bake bread at their restaurants they are not considered fast food according to this new minimum wage law the law states that restaurants which bake their own bread and also sell it as a standalone item do not fall into the category of fast food even though some customers consider them to be so there is now an investigation into this loophole especially in light of some Financial contributions made by Panera Bread franchise owner Greg Flynn who reportedly donated more than $150,000 to Newsome's campaign and this is according to Bloomberg News and considering Newsome's largest donors or one of his largest owners is from Panera Bread you you understand why from the jump it's already controversial but the other reason that it's controversial is because even though it's good politics it's bad policy now I want to say right off the top as somebody who worked at Five Guys for a very brief period of time working fast food is hard it does suck and I'm not one of these people people who snears at people who says that they don't deserve x amount of wage because in reality my opinion of the skill level or your opinion of the skill level required or your opinion of how hard they're working is not what dictates wages the market dictates wages and what this is about is not the character of the fast food workers the skill level that is required which let's be honest is not very high or the level of hard work that they put into these jobs which let's be Hest is actually pretty high it's about whether or not the market can sustain those wages and what we found out is that this is not the case reportedly they've already lost around 9500 fast food jobs a bunch of different places are closing and we have a segment from Good Morning America where they're talking about how prices are going up and consumers are very upset yeah I am hearing from customers every day who say they are already feeling that sticker shock restaurants have been warning about this since September when California voted to increase large fast food chains minimum wage by 25% from $16 to $20 an hour in that time restaurants in the state have increased prices by 10% faster than all other states according to data essential now the reason I open up this video by saying that minimum wage is good politics because it just is proven out by the facts these increases are overwhelmingly popular yet bad policy is because despite the popularity every single study that examines minimum wage shows us the very same thing if you raise it you will lose some jobs during the process and those outlier studies that all these different left wiers like to point to as proof positive that you're actually not costing any jobs all give the caveat when you actually read the study rather than the summary from the economic policy Institute Robert rice or whatever leftwing source that the reason there wasn't a decrease in employment is because whatever industry was able to pass on the cost to the consumers this is a basic of economics if you raise the price of something you will in fact get less people paying for it it's true for consumer goods it's true for fast food in terms of the product and it's also true for labor so of course California decided that they were going to do this because it is unbelievably and undeniably expensive to live in the state of California and rather than address the issues on why it's so expensive like zoning and the fact that it's almost impossible to build any kind of housing oppressive taxation or anything like that they've decided to blame the big corporations so we got this fast food minimum wage increase and it's going exactly as expected the California Restaurant Association says the price hikes were entirely predictable results of the minimum wage increase since it took effect job losses reduced working hours restaurant closures and higher prices for California's inflation weary customers have been ongoing the group said now I talked about how California fast food restaurants cut about 9500 jobs but this was disproportionately ly felt by Pizza Hut who was the biggest job cutter who actually fired nearly 1,300 delivery drivers also eloo loo and Jack in the Box announced that they will speed up the use of Robotics including robots that make salsa and cook fried foods now there's actually a very good reason why I wanted to highlight Pizza Hut and Jack In The Box and by the way all these other fast food companies saying that they're going to move toward Robotics and of course the kiosk that don't actually require a clerk is because this is the obvious stuff that we should have been alert to because we've been seeing signs of fast food companies moving in this direction but at the previous wage at the previous moment in time it was just not something that was such an obvious trade-off for them to go in that particular direction so let's start with the Pizza Hut drivers now is Pizza Hut still going to have delivery of course 100% now Pizza Hut basically was perfectly fine paying their delivery drivers $16 an hour hour having them get the tips that you people give to your drivers when they end up bringing pizza to you but instead what they're actually going to Pivot over to is Uber Eats door Dash and all these different various delivery app services that charge you guys a bunch of fees and guess what are actually not covered by the minimum wage increase so now instead of you having your pizza delivered to you by an employee who is actually paid a regular ordinary wage who gets your tips you're going to have have to go through door Dash Uber Eats whatever whichever one of these apps that charges you exorbitant fees in order to compensate for that so instead of employees we now have an increase in contractors which by the way the sharing economy which is the gig economy which is the contractor economy is in direct response to rules and regulations around labor because people want to work but they cannot normally get employed under the conditions that are set out by governments like the one in the state of California so great job to everybody you just put more downward pressure on Uber Eats delivery driers wages while firing people who were working regular ordinary jobs at Pizza Hut now not only do you have the issue with Pizza Hut and not only do you have the issue with a further push towards automation which some people are going to say they were going to do that anyway so I guess it's good policy to accelerate that but you also have the idea that this is somehow going to benefit adults because I don't know if you guys are aware of this the overwhelming majority of people who work fast food in the state of California they're not teenagers like you dumb dumb idiots think they they're adults except here's the thing that is also incredibly deceptive the wage increase is meant to give more Financial Security to the more than 500,000 people who work in fast food restaurants in California and are not teenagers but adults working to support their families now while it is true that a majority of fast food workers are in fact not teenagers 30% of them are and the next 30% are actually between the ages of 20 and 24 years old so this is around a college age Workforce and in fact that means that a majority 60% are actually 24 and younger therefore unlikely to be supporting a whole family now when you compare and contrast fast food workers to the overall economy only 133% of the workforce in the broader economy is under the age of 24 so what we have right now now is California doing something that felt good big fast food companies giant corporate profits we got to help those families in an industry that is overwhelmingly and disproportionately not filled with people who are trying to support their family and again if you are trying to support your family I'm not against you getting a higher wage per se it's just the fact of the matter is this is costing people jobs it's creating problems and getting paid $16 an hour is much better than getting paid zero an hour which is the wage that you will make when your fast food joint ends up shutting down and we've also seen a bunch of different shutdowns of these fast food restaurants that seemingly are reported by the news as a surprise even though again this is something that was warned about for a very long time now look there are a bunch of different news articles that talk about a group of restaurants shutting down here and there there's a Foster Freeze I often see reference which is an Ice Cream franchise that I never heard of must be something outside of my region but I do want to caution people from just highlighting these and going with your confirmation bias because one of these chains that I looked into called MOD Pizza did have some restaurants shut down five in the state of California post the wage increase but they've also had about 30 locations shut down nationwide so this could be a situation where that franchise is already struggling but the thing is if you have these fast food restaurants already struggling there's already upward pressure on wages which by the way we've seen with them offering all these different various bonuses in order to get people to take these jobs putting additional pressure on these restaurants is obviously going to lead to negative consequences now while the Foster Freeze appears to have given the employees advanced notice that they weren't going to be able to operate as soon as this kicks in I will also point out that some of these MOD Pizza did not give the employees notice so they ended up completely screwed over and if this is attributable to the minimum wage I I just find that to be absolutely horrible thinking that you're going to get a 25% pay increase only to show up to work and realize that the place is shut down but one of the other things that I think is absolutely crucial that is something that we should look at and examine because we're told all the time through the polling through people stated preference that they're willing to pay more money if that means that the employees can have a living wage is that this is often not the case in fact some of the very same people who pushed Starbucks to raise their wages to a livable wage got angry at them for raising the price of the latte by the way some of these people I believe called for an investigation into Starbucks for doing so even though the price increase that we saw at Starbucks was attributable to two things first and foremost they agreed to raise the wages of their employees and pay them benefits that people on the left said that they were willing to pay extra for and two they actually were in the business of coffee if you guys are unaware and that is one of the industries that was most shocked by the supply chain issues during the course of the pandemic so even this place that had completely legitimate reasons for raising their prices that actually was doing things that the left wi wanted they were not willing to pay so much so that you had people like Robert Rice demanding an investigation into them based on a slight increase in the price of a latte so I would like to examine and that going forward with these particular fast food locations now that California has the highest priced fast food in the nation I want to know what people are going to do will they seek Alternatives will this inadvertently lead to an increase in health or will people decide that they're going to go with smaller restaurants that are just as bad for you calorically that are going to probably have cheaper products because they also have to deal with upward pressure on their wages and they're going to compensate by doing that or I just want to know what the outcome is going to be well Nicole nearly a month after California's fast food minimum wage jumped to $20 an hour some customers have been fast to change their habits just as critics had predicted the sharp pay hike from $16 to $20 an hour kicked in on April 1st triggering higher menu prices everywhere at this Chick-fil-A many breakfast combos now well over $10 at in and out the popular double double is now nearly $6 in some parts of LA a Big Mac will set you back by $5 a Chipotle burrito by over 10 bucks you know one of the most annoying things about being in such an economically illiterate country is that you have these reports about these obvious consequences that anybody could have seen coming that people warned about and they're being reported on the news like they're a shock like it's something that you should be surprised about even though again every single study shows that increasing the minimum wage which quite literally Lally means you're criminalizing employment below a certain amount below a certain wage ends up reducing jobs and The Fringe outlier studies that the left wing drags out to say no actually it doesn't even though those are clearly the anomalies often have the caveat that the only way you're able to maintain employment is if the employer is able to successfully pass off the wage increase to the customers but you know what none of this matters when you have people say the CEO of McDonald makes this many millions of dollars therefore therefore economically illiterate policies that end up costing the lowest wage workers their jobs is good and moral and sound and dandy because in reality and actuality that's exactly the type of arguments that people on the left are making moral arguments they're not making economic arguments they don't even care about whether or not their policies actually help people the fact is you feel good when you pass minimum wage increases even though 9,500 people don't have jobs and a bunch of people who are delivering pizzas at Pizza Hut for $16 an hour perfectly fine plus tips are also out of work but hey I guess they can sign up over on Uber Eats and deal with the low wages that you end up dealing with when you're delivering for them but you know what those are just my thoughts let me know your thoughts down in the comments below if you like the video shown by leaving a like subscribe for more content follow me on all my social medias support VI the support links in the description of this video this has been me talking about the minimum wage disaster till next time by

Channel: Actual Justice Warrior

Views: 276,901

Keywords: Actual, Justice, Iamsean90, Sean, AJWSean, AJW, California, California Minimum Wage, Minimum Wage Hikes, Minumum Wage Increase, $20 Minimum Wage, Minumum Wage BACKFIRES, Pizza Hut Lay Off All Drivers, Panera Bread, Panera, Bread, Pizza, Pizza Hut, Hut, Fast Food, Fast, Food, Fast Food Wages California, 10000 Layoffs After Minimum Wage, Gavin Newsom, Gavin, Newsom, Gavin Newsom LIED, Gavin Newsom Minimum Wage Fraud, Gavin Newsom Minimum Wage Scam

Id: Tk64TwaJFp8

Length: 17min 31sec (1051 seconds)

Published: Wed May 01 2024